What is the definition of Insurance Score?

The Insurance Score refers to the rankings of consumers based on their credit information.

The insurance score reflects several aspects of the consumers' activities - but generally these look into how well the consumers' are able to run their financial affairs. It looks at open credit card accounts, the regularity and timeliness of loan payments and whether a consumer has already filed for bankruptcy. It also looks at any insurance claims the consumers may have made.

The insurance score is an indication of how responsible the consumer is - so it is an effective tool for writing policies and for determining the premiums of the policies. Thus, if a person has a high credit score, it means that that person is better as an insurance risk.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage